Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900. Accumulated depreciation at the time of the trade-in amounted to $35,300. The new bus cost $71,000 but Willis was given a trade-in allowance of $10,600. a. What amount of cash did Willis have to pay to acquire the new bus? b. Compute the gain or loss on the disposal for financial reporting purposes.
Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900. Accumulated depreciation at the time of the trade-in amounted to $35,300. The new bus cost $71,000 but Willis was given a trade-in allowance of $10,600. a. What amount of cash did Willis have to pay to acquire the new bus? b. Compute the gain or loss on the disposal for financial reporting purposes.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900. Accumulated depreciation at the
time of the trade-in amounted to $35,300. The new bus cost $71,000 but Willis was given a trade-In allowance of $10,600.
a. What amount of cash did Willis have to pay to acquire the new bus?
b. Compute the gain or loss on the disposal for financial reporting purposes.
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What amount of cash did Willis have to pay to acquire the new bus?
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